Embed Size (px)
Citation preview
Kwantlen Polytechnic University
Key Account Management Proposal MRKT 4160 – S50
Spring 2012
Prepared for Instructor, P. Ho
By: Alan Liu
Date: April 3rd, 2012
2 | P a g e
Toll free: 1-‐866-‐875-‐7561
Website: www.leafguard.com
Key Account Management Proposal Polygon Homes Ltd.
Prepared For General Manager of Leaf Guard Pacific Mr. M. Sask
E-‐mail: [email protected]
By: Alan Liu
4/3/2012
3 | P a g e
Executive Summary
Polygon Homes is a privately owned real estate home builder since 1980, and that its family of
companies has been building residential homes across the Lower Mainland. With a rising demand for
housing in BC, Polygon has been developing over 10 residential communities in the past two years.
Similarly, the demand for housing is correlated with the demand for building materials – Leaf
Guard’s gutter systems.
This report provides a detailed description of Polygon’s business profile, as well as an S.W.O.T
analysis that further describes the current business situation within the industry. Again, with an
increasing demand for housing, the demand for complimentary products such as gutters will also be
greater. For this reason, the report will also identify future sales opportunities for Leaf Guard Pacific,
and therefore, presents a sales strategic plan as well as an action plan in capitalizing future sales
opportunities. Polygon, as a potential key account, is expected to generate additional 48% sales for
Leaf Guard from the previous year ($3.9 million).
The following are anticipated sales objective a five year contract period:
Base on this projected sales objective, this report proposes three sales alternatives for Polygon. These
sales alternatives reduce the impact of high input cost for Polygon while creating service revenue
opportunities for Leaf Guard.
Option 1: Regular Price + Installation + Life time warranty on products with free-‐of-‐charge service
program
4 | P a g e
Option 2: 15% discount off regular price + No Installation + Limited 40 years warranty with exclusive
service rights at regular cost
Option 3: 20% discount off regular price + No installation + No warranty + Optional services
5 | P a g e
Table of Contents
Introduction ................................................................................................................................. 7
Business Profile, Polygon Homes Ltd............................................................................................. 7 Polygon Homes’ Mission & Vision .................................................................................................... 7
Business Positioning ........................................................................................................................ 8 Organization .................................................................................................................................. 10 Process .......................................................................................................................................... 10
Finance .......................................................................................................................................... 13 Interfaces....................................................................................................................................... 15
Issues – S.W.O.T............................................................................................................................. 17
Company Decision-‐making Process ............................................................................................. 19 Polygon’s Procurement Policy ........................................................................................................ 19 Decision Makers ............................................................................................................................ 20
Future Sales Opportunities ......................................................................................................... 20 Future Needs ................................................................................................................................. 20 Polygon’s Potential ........................................................................................................................ 20
Leaf Guard Pacific’s S.W.O.T Analysis.......................................................................................... 21 Positioning Analysis ....................................................................................................................... 21 Competitive Analysis ..................................................................................................................... 22
Proposed Sales Objective............................................................................................................ 23
Location & Product Matrix .......................................................................................................... 23 Figure A. Total Projected Sales Objective.......................................................................................... 24
Sales Strategy & Action Plan ....................................................................................................... 24 Anticipated Target for Year 2013, 2014, 2015, 2016, 2017 .............................................................. 24 Action Plan .................................................................................................................................... 24
Contribution to Lead Guard Pacific’s Organizational Goals & Strategies ......................................... 26 Value-‐added Activities for Polygon Homes Ltd ............................................................................... 26 Cost & Benefit Analysis on Sales Alternatives................................................................................. 27
Control Process........................................................................................................................... 28 Metrics .......................................................................................................................................... 28 Personnel Involved ........................................................................................................................ 29 Data Processing System (CRM)....................................................................................................... 29
Bibliography ............................................................................................................................... 31
Appendix A – Description on the Main Learning Experience from This Project ............................ 34
Appendix B – Top Management Personnel & Board of Directors ................................................. 35
6 | P a g e
Appendix C – Home Building Process .......................................................................................... 37
Appendix D – Sample Leaf Guard Price Quotation....................................................................... 38
Appendix E – Polygon Construction Management Ltd. Business Summary .................................. 41
Appendix F – Industry Supplier Criteria Sample........................................................................... 45
Appendix G – Sample Site Plan ................................................................................................... 47
Appendix H – Competitor Analysis .............................................................................................. 48
Appendix I – Competitors’ Product Details Vs Leaf Guard brand Gutters ..................................... 50
7 | P a g e
Introduction
Polygon Homes is a privately owned and locally operated real estate home builder since 1980.
Polygon and its family of companies have been actively engaged in building quality homes across the
Lower Mainland. Polygon Construction Management Ltd., being a sister company, are often
responsible for coordinating and managing these projects.
This report includes a Polygon Homes Ltd.’s business profile, as well as an S.W.O.T analysis that
further describes the current business situation at Polygon. In addition, the report also identifies
future sales opportunities for Lead Guard Pacific, and presents a sales strategic plan as well as an
action plan in capitalizing future sales opportunities. Lastly, the report will conclude with a
contingency plan in accommodating changes to the proposed action plan.
Business Profile, Polygon Homes Ltd
Polygon Homes’ Mission & Vision
Since the establishment of the company, Polygon Groups of companies is founded on four basic
company values in how the family of companies operates. Particularly, the company called these
values as “Polygon Foundations” (Polygon, 2010).
“Polygon Foundations”:
1. Trust 2. Sincere Care 3. Forward-Thinking 4. Environmental Responsibility
Aside from these four core values, Polygon strongly believes in contributing back to the environment
in which home and communities designs are tailored to be more energy efficient and environmental
friendly. These include three principles of “Polygon’s New Generation Homes”; design principles,
construction practices, and after sales care.
8 | P a g e
Business Positioning Industry Sector
Polygon Homes Ltd. is operating under the specialty construction industry sector. Specifically, the
characteristics and the business practices of the company have defined the business as a construction
company in which it is categorized under the industry code of NAICS 238120 (Structural Steel &
Precast Concrete Contractors) (Inside View, 2012) & 236 (Construction of Buildings) (Industry
Canada, 2011). In addition, Polygon Homes Ltd. falls under the category of construction – special
trade contractors (SIC: 1700) (Inside View, 2012).
Competition
The degree of competition under the housing industry is relatively high. Particularly, there are more
than 70 major builders & developers within Greater Vancouver. (Greater Vancouver BC Builders &
Developers Directory) This number does not account for smaller size construction firms or
subcontractors who also operate under the same or similar industry sector.
Key Products & Related Market
Polygon Homes Ltd., being one of the “…most well-established and highly respected home builders
in British Columbia”, have built over 20,000 homes throughout the Lower Mainland. These include
concrete high-rises, wood-frame condominiums, town homes and single-family homes. The primary
focus for the company was to build high quality residential apartments and town-homes that are more
affordable to the average homebuyers.
Industry Performance Indicators
According to the Canadian Home Builder’s Association, “[m]any major markets, such as Toronto
and Vancouver, are benefiting from buoyant housing demand – in part, spurred by foreign
investment in housing” (Canadian Home Builders' Association, 2011, p. 1). The report also indicated
that real spending on residential construction has more than doubled, and that the increase in
9 | P a g e
residential construction expenditures was a major factor behind Canada’s strong economic
performance in the send half of 2009 and first half of 2010. (Canadian Home Builders' Association,
2011, p. 1)
The continued employment growth, low interest rates as well as the high volume of immigration has
been key drivers for the residential housing industry. (Canadian Home Builders' Association, 2011, p.
2) According to the long-term projections of housing demand, Altus Group has projected “…that
housing demand will remain at a robust levels for the next two decades” (Canadian Home Builders'
Association, 2011, p. 5). The report suggests that the strong housing markets have lead resale
housing prices to rise to a level more than reclaimed the losses suffered during the previous recession
period. Furthermore, the report also indicates that B.C. has the highest projected new house volume
(29,000 units) in 2012 among all provinces and territories in Canada. (Canadian Home Builders'
Association, 2011, p. 12) In 2010, GDP in the construction sector increased from $55.5 billion in
2001 to $73.9 billion. Particularly, total value-added of the construction sector increased by 6.6%
between 2009 and 2010 (Industry Canada, 2011). Together, these performance indicators suggest that
the residential housing market remains at a steady growth rate for the upcoming years.
Reputation
Polygon Homes Ltd. has become a BBB Accredited Business since January 3rd, 1993 with a rating of
A+ on a scale of A+ to F. Specifically, “BBB has determined that the company meets the BBB
accreditation standards, which include a commitment to make a good faith effort to resolve any
consumer complaints” (Better Business Bureau, 1990). In addition to reputation and the overall
service quality, Polygon Homes Ltd. is also a recipient of the consumer choice award. (Consumer
Choice Award, 1987)
Business Ranking
10 | P a g e
Under the category of real estate/construction, Polygon Homes Ltd. ranked 7th place with annual
revenue of $375,000e in 2008. (BC Business Online, 2009) In terms of total staff size, Polygon
ranked 2nd place with 1,150 units (Year 2010) built and employing 150 staffs (Year 2011) in B.C.
(Concert Properties, 2011).
Organization Staff Size
Being the 7th largest developer in B.C., Polygon Homes Ltd. (British Columbia) is employing 150
staffs as of year 2011 (Concert Properties, 2011). These staffs include employees from office &
administration, management teams, and construction site workers.
See [Appendix B] for detailed list of top management personnel & Organizational Chart.
Key Locations/Regions
New Communities
North Vancouver; Anderson Walk Town home
Coquitlam; Tyneridge Town home Langley; Red Maple Park Town home Delta; Eclipse Town homes
Upcoming Communities
Abbotsford; Hartwell Town home Vancouver; River Walk Town homes
*Note: excluded apartment projects as they do not apply to Leaf Guard’s gutter systems
Polygon’s new apartment projects have been excluded from the list due to the fact that the Leaf
Guard gutters system was designed specifically for low-rise buildings. Previously, Polygon has been
focusing its efforts in developing communities in three major cities such as Coquitlam, Richmond,
and Burnaby. Today, Polygon has expanded its operations in creating more residential communities
in North Vancouver, Coquitlam, Langley, Delta, and Abbotsford.
Process Construction
The general construction process begins by involving a formal design team in the planning of
physical proceedings as well as the integration of these proceedings with other parts. Specifically, the
11 | P a g e
design team usually consists of surveyors, civil engineers, cost engineer, mechanical engineers,
electrical engineers, structural engineers, fire protection engineers, and planning consultants
(Wikipedia, 2012). In case of Polygon, the designing process is outsourced to external architectural
companies. The two major architectural suppliers for Polygon Homes are Buttjes Architecture
(Buttjes Architecture Inc., 2012), and Commercial Concerns (Commercial Concerns Ltd., 2012).
As soon as the designing process is completed, the construction process will then be contracted to its
sister company, Polygon Management Construction Ltd. and/or other construction management firms.
Generally, external construction management firms would need to make a bid for the project. The bid
would generally “…based on the design or on the basis of drawings and a bill of quantities provided
by a quantity surveyor” (Wikipedia, 2012). Often, the contract will be awarded to the most cost
efficient bidder in this regard.
[See Appendix C for Construction Process]
Supply Chain
The supply chain for residential building materials are generally manufactured and sold within
relatively small geographic area due to transportation costs and etc. Polygon Homes, in this case,
makes purchases through large wholesales or retailers depending on the size of the order. Often,
homebuilders make purchases through buying groups, cooperatives, specialty distributors, home
centers, and even retail lumberyards. These buying groups buy from manufacturers and wholesalers,
and therefore, they are able to negotiate lower prices and rebate programs that allow them to
distribute discounts to their members. The benefit of buying group is the ability to “…leverage the
purchasing power of member firms” (MacKenzie, 2012). In short, procurement approach for
homebuilders often involve centralized purchasing that allows the company to benefit from quantity
discounts through bulk purchases.
12 | P a g e
According to D&B’s business summary, Polygon Constructions Management had 30 active accounts
from 2011 (D&B, 2012). [See Appendix E for Business Summary Details]
Human Resources
Some of the top tier home builders do not actually build their projects. Instead, they often focus
on …”land development, home design and coordinating independent contractor crews that actually
build their homes for them” (MacKenzie, 2012). It is often the case that industry leaders outsource
the construction projects to local subcontractors. This provides advantages in focusing limited
resources in companies’ core competencies. Polygon homes monitors its construction process by
managing construction projects under its sister company, Polygon Construction Management Ltd., in
coordinating and ensuring co-operations between subcontractors.
Sales Channels
Ralph Archibald, senior VP in Sales & Marketing of Polygon Realty Ltd., oversees Polygon’s sales
and marketing activities. Generally, Polygon releases press conferences that create awareness and
interest prior to the announcement of the completion of their new residential home projects. In
addition, Polygon has its own marketing and sales subdivision in setting up sales centers/offices
which allow real estate agents to represent the company in selling these homes. Sales centers/offices
are usually set up near the “display house”. This helps sales agents to show the potential home buyers
around the area and eventually close a sale at the sales center. On the other hand, Polygon seeks for
external sales opportunities from other realtors who may be interested in bringing buyers in. In turn,
these external realtors will be compensated with a higher commission rate as well as bonuses.
Besides the sales process, Polygon often utilizes paid, earned, and owned media in creating
awareness and consumer interests in regards to selling their homes. These include social platforms,
news paper, radio, etc. Generally, Polygon ensures a massive exposure of their recent and upcoming
offerings in newly built homes via the three major types of media mentioned above.
13 | P a g e
Management Procurement System
The procurement system in the construction industry involves the “…arrangement of client in
playing an active role by entering into separate contracts with the designer (architect or engineer), the
construction manager, and individual trade contractors” (Wikipedia, 2012). In short, the construction
management firm engaged in managing separate trade contracts, and ensuring that these
subcontractors work smoothly and effectively together in providing products and/or services.
Finance Public or Private
Polygon Homes Ltd. is a privately held corporation since 1980. Due to the fact that the company is a
privately held corporation, Polygon does not have its financial statements available to the general
public. For that reason, financial performance of Polygon will be estimated base on industry averages.
Revenue & Expenses
Revenue for Polygon Homes Ltd. in 2011 was estimated at $450 millions (Inside View, 2012).
According to BC Business Online, Polygon Homes Ltd. was ranked 60th in B.C.’s biggest companies
in year 2011, by Revenue (BC Business, 2011). Furthermore, the report has indicated that Polygon
Homes Ltd. has estimated annual revenue of $450,000,000 in year 2011. According to Industry
Canada’s 2008 industry statistics, 81.5% of the small and medium size construction businesses were
profitable and the average revenues were estimated at $450,400 for these profitable firms (Industry
Canada, 2010). On the other hand, total expenses for these firms were estimated at $391,400
(Industry Canada, 2010). However, this industry performance measure is only applicable for Polygon
Construction Management Ltd. and that does not take into the consideration of the total revenue of
the Polygon Group. These measures exclude other sources of income such as capital gains or losses,
equity in net income of related parties, etc.
14 | P a g e
Margins
According to BC Business, Polygon was ranked 8th biggest company, by Revenue, within the real
estate and construction industry (BC Business, 2011). For that reason, Polygon has deemed to be one
of the most profitable companies within its business category. According to Industry Canada’s 2008
statistics, the average net profit for a small and medium size construction company was estimated at
8% of its annual revenue. In other words, we could estimate the annual profit margin for Polygon
Homes Ltd. base on this measure. As a result, gross profit for Polygon Homes Ltd. in year 2011 was
$36,000,000 (450 million * 0.08% of profit margin) (Note: this does not take into consideration of
income tax).
Cost Control
From a cost perspective, cost of sales was one of the main cost drivers in the construction business
and that the costs of building materials have increased dramatically over the years. In fact, the overall
cost of purchases, materials and sub-contracts were estimated at 59.5% of total revenues while the
overall operating costs constitute 29% of the total revenue (Industry Canada, 2010). With this given
statistical measure, costs of purchases is estimated at $267.75 million ($450 million * 59.5%) for
Polygon Homes in year 2011.
Overall: Recent, Current & Future Trends
“Higher energy prices continued to play a key role in rising producer prices and building materials
prices” (NAHB). As a result, prices for building materials and components has rise 2.8% from a year
earlier. Although residential building material prices have been raising faster than the construction
category, the overall prices for finished goods are moving towards an inclining trend. With the prices
increase for energy and raw materials, the cost of producing and delivering these finished goods have
also increase in correlation. In turn, the overall effects were input costs for developers and that leads
to higher costs for home buyers.
15 | P a g e
Meanwhile, “[s]oftwood lumber prices continued their recent march upwards and rising 3.0% in
January after increasing 2.2% and 3.4% in November and December, respectively” (NAHB). In fact,
the price increase for softwood lumber was caused by an overall decrease in production, which in
turn transferring the effect of limited production to distributors in carrying less inventories. “As of
January of 2012, softwood lumber prices were up 8.7% from a year earlier” (NAHB). Together, there
two cost drivers constitute a major effect on home developers such as Polygon and that the rising
price trend is expected to continue as energy prices remain at a high level.
Interfaces Business Relationships with Main Suppliers
According to research, Polygon has maintained a positive and long term business relationships with
its main suppliers such as Toro Aluminum as a supplier for windows. Together, Polygon and Toro
Aluminum has developed over two major projects together; namely, Luma (2011), Altaire 7 (2008),
and Altaire 8 (2009) (HRG Projects, 2012). Previously, Polygon Construction Management Ltd. had
40 active accounts in 2011 (D&B, 2012).
Generally, businesses tend to maintain a positive relationship with its partners and suppliers once the
relationship has established. This applies to Polygon with no exception. The result of a positive
relationship is the ease of supply chain management.
Major Customers
Polygon focuses in building residential homes in British Columbia; the major targeted customers for
the company’s offerings are B.C. residents. Potential and major customers are usually targeted on a
geographical basis in which home projects are tailored to the needs of the local residents.
In the past, Polygon has developed and built homes in Richmond, Burnaby, Port Moody, Coquitlam,
Langley, Delta, North Vancouver, and Abbotsford. Previous projects were primarily located in
Richmond, Delta, and Coquitlam. Therefore, residents from these areas were major customers for the
16 | P a g e
company’s offerings. Recently, the company has focused its operations in regions where demand for
housing is greater. These include regions such as Abbotsford, Coquitlam, Vancouver, and Delta. Not
surprisingly, Coquitlam and Delta has remained major areas of market for Polygon while numbers of
projects in Abbotsford, and Vancouver are progressing further for the upcoming years.
Governments
Neil Chrystal, President & CEO of Polygon Homes Ltd., “currently serves on the Board of
Executives of the Urban Development Institute – Pacific Region” (Polygon Homes Ltd., 2012).
Peter Roskell, senior VP of Construction at Polygon Construction Management Ltd., has served on
the Board of the Greater Vancouver Home Builders Association as both a director and Chairman.
Partners
Business Partners (HRG Projects, 2012)
-Window Supplier
-Architect
-General Contractor
-Building Envelope
-Design
Planning Consultant
-Toro Aluminum
-Buttjes Architecture
-Polygon Construction Management Ltd.
-Engineering by Morrison Hershfield
-Nigel Baldwin Architects Ltd
Commercial Concerns Ltd.
Push vs. Pull Strategy
Again, homebuilders often utilize a push strategy in creating demand through massive advertising,
public relations, and sales promotions. These promotional strategies help to create consumer
demands for new or existing homes. Often, marketing campaigns are specifically tailored for
different home projects, and that they contribute in explaining the benefits and amenities of these
homes or communities. In short, Polygon frequently uses an integrated marketing communication
strategy in creating demand, which is also known as a pull strategy. On the other hand, real estate
17 | P a g e
developers and construction companies generally plan for projects base on economic performance
indicators and other forecasting tools prior to the developing a project.
Issues – S.W.O.T Polygon’s Business Challenges
With an unstable economy, the price of new housing in BC’s two largest cities continued to drop in
June 2011. In fact, the average cost for a new home in Vancouver was down by 0.7% over the same
month in 2010 (B.C Government, 2011), while the rate of decrease in price for Vancouver new
homes (-0.3%) has exceeded by the declining price of land (-1.1%). Together, a declining trend in
price of new homes and the inclining trend in cost of inputs for Polygon and the overall construction
industry have drive significant challenges to the business.
Polygon’s Current Problems/Issues
From a cost perspective, the inclining trends in costs of inputs have become a major concern for
Polygon. Besides the cost of raw materials, the increase in input cost also take into consideration of
labor. In fact, labor cost is deemed to be the 2nd largest portion of home building follow by purchases
for construction materials and components. In other words, the overall cost of transferring input into
output has a significant impact on Polygon’s business and that it may hinder the company’s
profitability.
On the other hand, the unstable economic performance in B.C. has drive uncertainties in the forecast
of demand in residential homes. According to B.C. Government Economic Indicators, B.C.’s GDP
has expanded 3.0% in 2010 after registering a contraction (-2.1%) 2009 (B.C Government, 2011).
Although the economy has slowly recovered from the previous recession, residential investment was
only moderately higher at 4.9%, while non-residential structures have increased by 27.1%. In other
words, the general trend for investors is leaning towards commercial assets and that the results of a
recovering economy have not yet benefit Polygon as a residential home developer.
18 | P a g e
Polygon’s Expectations
Since the establishment of the organization, Polygon has been developing new ways of building
residential homes that bring greater values to its customers. Specifically, “Polygon believes in
contributing positively to the environment.” (Homes, 2011) These includes retaining as many trees as
possible, designing water systems that help to reduce the amount of water being used, and designing
home communities that use recyclable resources.
In addition to these new building technologies, the company has also incorporated environmental
building structure designs that help to reduce wastes and protecting the environment. Polygon Homes
has established a set of home building standards by joining forces with building scientists in
addressing the issues with water penetration and contemporary design. Through this establishment,
Polygon has created a home building concept; namely, “Polygon New Generation”. It is the ultimate
protection and reassurance for home owners. Polygon new generation construction combined new
design principles, construction practices, and after sales care. (Polygon, 2010) The overall goal was
to prevent water damage to the foundation as well as the building envelope caused by the rainy west
coast climax.
As part of the new generation initiative, Polygon has implemented a quality assurance program forms
the basis of the Canada Mortgage and Housing Corporation (CMHC)’s new industry benchmark.
Additionally, this quality assurance program suggests that only the most appropriate and qualified
building materials are used in building the Polygon homes. In fact, all of these materials have to be
qualified for the west coast weather climates.
Overall: Recent, Current & Future Issues
Despite the impacts of rising input prices and slow growing economy, Polygon expects to see an
overall increase in demand for new homes in the Greater Vancouver area. The company forecasted
the demand for the housing industry based on the overall increase in the number of immigrants as
19 | P a g e
well as the expected economic growth in the upcoming three years ( 2013 – 2015 at 2.8% growth)
(B.C Government, 2011). Base on these given forecasted measures, Polygon progressively increases
its investment in the home building process and projects.
Company Decision-making Process
Polygon’s Procurement Policy
“During the different construction phases, the client selects partners to provide inputs in the
construction process” (Rijn, 2012). Polygon Construction Management Ltd. (PCM) and its sub
contractors/suppliers perform the construction process and are less involved in it’s the design of the
building. Polygon Homes Ltd. procures services from its architectural partner and consultants in the
designing process. The company directly appoints its construction process to its sister company,
PCM. From there, PCM subcontracts it building processes to different subcontractors in carrying
various jobs. The policy in selecting a subcontractor involves the options of both nominations
(contractor and consultants do not compete with each other which they have long term business
relationships) and selective competition (a number of qualified firms are invited to submit a proposal)
(Rijn, 2012).
Ideal Supplier Profile & Procurement Criteria
Without further information on Polygon’s ideal supplier profile, the following criteria are base on
industry expectations. Generally, construction companies often make the decision in supplier
selection base on quoted prices as well as the suppliers’ ability such as capacity, company’s past
project experiences, reputations, etc.
In the case of Polygon, we would make the assumption that the company’s decision in selecting a
supplier would be similar to the industry norm. As costs of input in building materials go up, the
approach in managing cost has become one of the crucial aspects in the construction industry. For
that reason, price of suppliers’ products is, therefore, one of the major determinants in selecting ideal
20 | P a g e
suppliers. However, supplier selection solely base on price may not be an favorable alternative for
Polygon, as the company wants to ensure the quality of product and service that it would received
from its supplier. In fact, Polygon prides itself as one of the leading developers within the industry
where quality is always one of their competitive priorities. Therefore, quality of product and service
from supplier will then be the company’s main determinants in selecting a gutter supplier. [See
Appendix F for Industry Supplier Criteria]
Decision Makers
The following are the stakeholders in the decision-making process:
Neil Chrystal – President & CEO, Polygon Homes Ltd.
Robert Bruno – Senior VP Finance, Polygon Homes Ltd.
Andrew B. – VP of Finance, Polygon Homes Ltd.
Peter Roskell – Senior VP Construction, Polygon Construction Management Ltd.
Andrew C. – VP of Construction, Polygon Construction Management Ltd.
Future Sales Opportunities
Future Needs
Over the past two years, Polygon has developed ten residential communities within the Lower
Mainland. Within these communities, five of them are small and medium size townhome complexes
with units range from 25 to 64 units (Polygon Homes, 2012). [See Appendix G for Sample Site Plan]
Base on this figure, we can conclude with an assumption that Polygon will continue to develop
residential communities at a similar pace for the upcoming five years. Therefore, the expected
number of residential communities that Polygon is going to develop in the upcoming five years is 12
complexes within regions such as Abbotsford, Coquitlam, Vancouver, and Delta.
Polygon’s Potential
With an expected output level of 12 complexes for Polygon within a five year contract period, Leaf
Guard as a gutter supplier/subcontractor can expect a projected total sales revenue of $1.89 million
dollar [See Figure A]. In fact, Leaf Guard’s previous annual sale in 2011 was estimated at $3.9
21 | P a g e
million (Ho, 2012). Therefore, this potential sales figure from Polygon is considered to be a major
account for Leaf Guard as it would increase the company’s annual sale by 48.46% [($3.9 million +
$1.89 million) / $3.9 million]from previous year (Note: assuming Leaf Guard is able to maintain its
annual sale of $3.9 million).
Leaf Guard Pacific’s S.W.O.T Analysis
Leaf Guard brand gutter system S.W.O.T (Leaf Guard Englert, 2012):
Strengths:
Only one piece covered gutter system made from heavy gage single piece of aluminum Various color and designs that blends into different style of homes Durability, 20% thicker and stronger than ordinary gutters 3” x 4” downspout (normally used for commercial buildings that requires heavy water
drainage) Larger than average downspouts that handles a greater water flow (able to handle 32 inches
of rain per hour) Patented internal hangers that do not restrict water flow directed by its gutter hood Tested by good housekeeping institution and backed up housekeeping seal 50 years life time warranty plus free service charge Warranty can be transfer to the next home buyer
Weaknesses:
Higher price than ordinary gutters Potential delays in material inputs from U.S may cause Leaf Guards miss contract deadlines Lack of experience in handling B2B contracts
Opportunities:
Developing business relations with other high-end home developers Securing a main supplier status with Polygon families of companies such as Morning Star
Homes Ltd. (home builder specializes in building single family homes)
Threats:
Counterfeit products that claims to have the similar features of a Leaf Guard gutter system at a lower price
Indirect competitors may attempt to approach Polygon with a lower price quotation
Positioning Analysis
Leaf Guard as an industry leader in gutter system offers a one-piece gutter system that guarantees it
would never clog. The benefits of this one-piece aluminum gutter system go hand in hand with
22 | P a g e
Polygon’s competitive priorities in sustainability of its residential homes as well as the quality of
construction and after sales care. Moreover, the design of gutter system complies with Polygon’s
New Generation Home concept – design principle & construction process.
Specifically, Polygon values environmental friendly business activities in designing and developing
its residential communities. In this case, Leaf Guard brand gutters fit perfectly with Polygon’s
company objectives in producing less waste and becoming more environmental friendly. Particularly,
Leaf Guard brand one-piece gutters are made from aluminum that is 20% thicker than conventional
gutters in the market (Leaf Guard Englert, 2012). These quality gutter systems are expected to last 5
times longer than ordinary gutter system and that they are protected by a 50 year life time warranty.
Generally, conventional gutter systems require regular maintenance and replacement in every 5 to 7
years.
Clogged gutters often cause water overflow which may lead to erosions to the home frame structure
and building foundation. Leaf Guard brand gutters help to address the issue of water penetration for
Polygon’s homes as part of “Polygon New Generation Homes”. According to Polygon, the new
building concept, New Generation Homes, involves design principles, construction practices, and
after sales care. The benefits of Leaf Guard’s serve the needs of Polygon perfectly these three major
aspects of its New Generation Homes.
Competitive Analysis
Because of the fact that Leaf Guard brand gutter system is a patent system, there are nearly no direct
competitors in offering gutter systems with similar design. There are three major indirect competitors
within the gutter system market. These include Dynamic Gutters (Dynamic Gutters, 2012), Weather
Guard Gutters Inc. (Weather Guard Gutters Inc., 2012), and Pro Image Gutters (Pro Image Gutters,
2012). [See Appendix H for detail competitor analysis] [See Appendix I for competitors’ product
details]
23 | P a g e
Base on the competitor analysis, Pro Image Gutters Ltd. is, therefore, a major competitor for Leaf
Guard as Pro Image Gutters has an extensive field of experience in the commercial field and B2B
sales. On the other hand, Pro Image Gutter Ltd. has previous dealt with other home builders in selling
and installing its gutter systems. Although Pro Image’s products are generally cheaper in terms of
cost, the features of these gutters are generally less effective such as leaves deflection, etc.
Proposed Sales Objective
As indicated in the Polygon’s future needs section, the expected number of residential complexes
was 12 within the five year period. Base on the sample average price quotation per home, the
proposed sales objectives for Polygon are as follows:
$5,267 per home * 30 homes per complex * 12 complexes in five years = $1,896,120
Assumption: Polygon will develop 12 complexes in the upcoming five years; number of unit per
complex is an estimate within the lower range (25 units to 64 units).
Location & Product Matrix
As indicated early, Abbotsford, Coquitlam, Vancouver, and Delta are the four major cities that
Polygon is focusing in developing residential communities in. The following are estimated potential
sales for each region. Note: the following calculations are made base on the estimates of number of
complex within each region as well as the number of units per complex.
Together, these four regions contribute to a total projected sales objective of $1.89 million over the
upcoming five years. Clearly, Abbotsford’s potential sales figure per complex is relatively higher to
other regions. The reason for that is because the average size of complex in Abbotsford is relatively
bigger in terms of home units. Base on the following estimate, Coquitlam region is consider being
the most profitable base on the estimated total potential sales figure.
24 | P a g e
Without any further information regarding the upcoming projects for the following four to five years,
we can conclude with an assumption that Abbotsford is the most profitable region in terms of
potential sales per complex, and therefore, Leaf Guard should focus in contributing its efforts within
such region. On the other hand, Coquitlam being the most profitable region in terms of total potential
sales would provide Leaf Guard with the most subcontracts which in turn generating more total sales
from this specific region.
Figure A. Total Projected Sales Objective
Sales Strategy & Action Plan
Anticipated Target for Year 2013, 2014, 2015, 2016, 2017
With a total projected sales objective of $1.89 million dollar throughout the five year period, the
following anticipated sales targets for each year are calculated base on a weighted average sale per
year basis. Note: the following weighted percentages are percentages of anticipated total sale.
Anticipated Sales Target 2013 (10%) = $1,890,000 x 10% = $189,000
Anticipated Sales Target 2014 (15%) = $1,890,000 x 15% = $283,500
Anticipated Sales Target 2015 (15%) = $1,890,000 x 15% = $283500
Anticipated Sales Target 2016 (25%) = $1,890,000 x 20% = $472,500
Anticipated Sales Target 2017 (25%) = $1,890,000 x 30% = $472,500
Action Plan
With Leaf Guard’s management consent and support in approach Polygon as a potential key account,
the following are a list of activities in approaching the client within the upcoming eight months (Note:
25 | P a g e
assuming the contract period starts at the beginning of January, 2013 and that the previous action
would receive approval from the client to proceed ).
April – June 2012
Approaching the project/construction managers (Greg B. Building Envelope Manager; Naz Y. Construction Coordinator) and cost engineers of Polygon would allow one to understand the specific requirements and ideal supplier criteria of choosing a new gutter system supplier. On the other hand, information can also be acquired for evaluating Polygon’s current supplier’s products and offerings. This allows Leaf Guard to potentially compare and out weight the current supplier’s offerings in securing a long term contract from Polygon.
Base on the information given/acquired, Leaf Guard can then prepare and develop a more detail RFP proposal to Polygon’s final decision makers with referencing from its project/construction managers and cost engineers.
On the other hand, Leaf Guard, as a company, should consider joining the “Canadian Home Builders Association of BC” as its major competitors are also members of this association. By becoming a member of this association, Leaf Guard will be able to expand its network in the B2B business world. In turn, the company can also accumulate its experience in developing and assisting business clients. This helps Leaf Guard to become a more relevant option in supplying its extraordinary gutter systems to various home builders/developers in the future. [Refer to http://www.chbabc.org/content.php?id=18 for membership information]
July – August 2012
Prepare and submit a proposal cover letter to the Mr. Peter Roskell (Senior VP of Construction);Mr. Andrew C. (VP of Construction) and Mr. Robert Bruno (Senior VP of Finance); Mr. Andrew B. (VP of Finance) in explaining the benefits and long term cost savings that Leaf Guard brand gutter system can offer.
The proposal would include a statement of work (SOW) to be performed, product/service analysis as oppose to competitors’ offerings, and pricing package alternatives.
November – December
2012
Upon approval, Leaf Guard would need to prepare a detailed RFP proposal in further explaining the cost and benefits of Leaf Guard’s product as a supplier.
These include the following (Professional RFP Letters, 2011):
i. Cost estimate analysis base on the work breakdown structure
26 | P a g e
(WBS) of a specific residential community project. ii. General requirement analysis that includes details on project staff
and support, safety/security, engineering, facilities, utilities, equipment and cleanup process dedicated to Polygon’s project.
iii. Fee and markup analysis which includes construction costs, Leaf Guard’s proposed financial terms, tax terms, etc.
iv. Final proposal analysis which includes a total construction estimate cost per job, adjusted construction budget, responsibilities, determination and comparison of both parties.
Contribution to Lead Guard Pacific’s Organizational Goals & Strategies
Leaf Guard’s proposal in securing a 5 year contract with Polygon as a major supplier is
complementary to Leaf Guard’s overall strategic goal in developing a new market with developers.
Presently, Leaf Guard primarily focuses in providing services to residential home owners as well as
commercial building owners. As a result, this has imposed limitation to Leaf Guard in generating
new clients and sales. This noticeable constraint in market development has brought the attention to
Leaf Guard Pacific’s General Manager. For that reason, Leaf Guard has recently developed and
focused its resources in acquiring large contracts with property management firms in the replacement
of gutter systems.
Clearly, potential sales from a B2B aspect go beyond the scope of dealing with property management
firms. Therefore, the importance in further developing business clients has become crucial for Leaf
Guard. In response to the organizational goals and strategies in this field, the intention to develop
business relationships with home developers in securing long term contracts will provide a steady
source of sales revenue for Leaf Guard during the contract period(s).
Value-added Activities for Polygon Homes Ltd
Base on the fact that Leaf Guard brand gutters are backed by a transferrable 50 years life time
warranty as well as a free-of-charge service program, the quality and maintenance aspect of
Polygon’s homes are ensured with quality and service guarantee. Furthermore, benefits of Leaf
27 | P a g e
Guard’s gutters go beyond the product design and material quality. Although the costs of these
gutters are relatively higher than its competitors, these gutters imply a cost savings for home owners
in maintenance and replacement costs in the long run. On the other hand, residential complexes
involve property management firms in managing and maintaining the complex with a monthly
management fee. Conventional gutters require yearly maintenance and clean ups, and the costs of
these regular maintenances will increase the cost of management fees for residents. With a Leaf
Guard brand gutter system, the cost of replacing and servicing these gutters can be eliminated. In
short, Leaf Guard brand gutters are not only design to be effective and long lasting, but also cost
efficient in the long run.
Cost & Benefit Analysis on Sales Alternatives Option 1: Regular Price + Installation + Life time warranty on products with free-‐of-‐charge service program
Gutters can be sold at regular price with installation and 50 years life time warranty on products. This
includes free-of-charge service program. For Polygon, the benefit of this alternative is that the entire
gutter system building process can be outsourced to Leaf Guard as a subcontractor. Polygon requires
minimal efforts in coordinating the process of installing its gutter systems.
Option 2: 15% discount off regular price + No Installation + Limited 40 years warranty with exclusive service rights at regular cost
Gutters can be sold with a 15% discount off regular price. However, Polygon would need to hire an
installer crew for gutter installation. In addition, these gutters are covered under a 40 years limited
warranty with exclusive service rights issued to Leaf Guard. Specifically, regular maintenance will
be served at regular cost.
Option 3: 20% discount off regular price + No installation + No warranty + Optional service
Lastly, gutters can be sold with a maximum discount of 20% off regular price. With this discounted
price, gutters will not be installed by Leaf Guard’s crew and these gutters will not be covered under
28 | P a g e
any warranty. However, Polygon will have an option in whether maintenance services are done by
Leaf Guard or an external company.
Control Process
Metrics Business
Over the past year, Leaf Guard has generated 861 new deals (jobs), and the average lead time in
closing these deals was estimated at one week. Within these 861 new deals, the average revenue
generated from each deal was estimated at $4,500. (Ho, 2012) In addition, the estimated profit
margin was approximately 12%. Base on the anticipated sales objective for Polygon, Leaf Guard is
expecting an extra $226,800 in sales revenue ($1,890,000 * 12%).
Contacts
An average number of visits with client is expecting to be twice a month; 24 visits per year. These
visits will be allocated accordingly to the following personnel:
Mr. Andrew C. (VP of Construction) Mr. Andrew B. (VP of Finance) Greg B. Building Envelope Manager Naz Y. Construction Coordinator
Information
During the preparation of this KAM proposal, the following personnel were contacted for research
purposes.
Neil Chrystal ( President & CEO) Mr. Peter Roskell (Senior VP of Construction) Ben Smith (Senior VP of Marketing)
Customer Satisfaction
According to research, the average customer satisfaction rating for Polygon was 10 out of 10 (Home
Stars, 2012). Specifically, the reviewer has indicated that “Polygon paid attention to the details…”
29 | P a g e
This tremendous result in customer satisfaction was generated by the quality of Polygon’s home and
customer service quality.
Efficiency
Actions Completed
- Contacted Polygon in the research process
- Requested information on ideal supplier criteria
- Company background research
- Industry performance research
Actions Postponed
- Joining Canadian Home Builders Association to expand Leaf Guard’s business opportunities
- Financial information needed for Polygon
- Contact decision makers and relationship building
- Officially submit a proposal in supplying Leaf Guard’s gutter systems
- Finalize on contract details
Personnel Involved
Polygon Homes Ltd.
Peter Roskell (Senior VP of Construction)
Andrew C. (VP of Construction) Robert Bruno (Senior VP of Finance) Andrew B. (VP of Finance) Greg B. Building Envelope Manager Naz Y. Construction Coordinator
Leaf Guard Pacific
Malcolm Sask (General Manager) Alan Liu ( Strategic Account Manager)
Data Processing System (CRM)
After the acquisition of securing a 5 year contract with Polygon, Leaf Guard will need to implement
a data processing system in transferring and sharing business information with its account. Externally,
a successful customer relationship management approach requires a strategic manager, Alan Liu, in
assisting and approaching client’s needs. This involves a frequent and schedule visits with the
account in communicating contract details as well as relationship building. Internally, Leaf Guard
30 | P a g e
will need to hire an assistant in transmitting and sharing business contract details and information
with its client. This includes but not limited to the implementation of an information processing
system which allows free flow of client information internally and externally. Internally, this
information processing system allows Leaf Guard employees such as the strategic account manager
in accessing relevant information. Externally, information can also be given to Leaf Guard’s client,
Polygon Homes Ltd. in this case.
31 | P a g e
Bibliography
B.C Government. (2011, November 8). Economic Indicators. Retrieved March 27, 2012, from http://www.gov.bc.ca/keyinitiatives/economic_indicators.html
BC Business. (2011, July 1). B.C.'s Biggest Companies 2011, by Revenue. Retrieved March 23, 2012, from http://www.bcbusinessonline.ca/files/Top100/Top100_Overall_2011.pdf
BC Business Online. (2009, Jul). Top 100 Sector Highlights. Retrieved Feb 22, 2012, from http://www.bcbusinessonline.ca/files/Top100-2009-SectorHighlights-opt.pdf
Better Business Bureau. (1990, Mar 22). BBB BUSINESS REVIEW; Polygon Homes Ltd. Retrieved Feb 22, 2012, from Better Business Bureau: http://www.bbb.org/mbc/business-reviews/real-estate/polygon-homes-ltd-in-vancouver-bc-114868
Buttjes Architecture Inc. (2012). Company Web Page. Retrieved March 27, 2012, from http://www.buttjesarchitecture.com/index.php
Buttjes Architecture Inc. (2011). Projects. Retrieved March 23, 2012, from http://www.buttjesarchitecture.com/projects.php
Canadian Home Builders' Association. (2011, 10). Building Industry. Retrieved Feb 22, 2012, from BC Building Info: http://www.chba.ca/uploads/policy%20archive/2011/Housing%20Industry%20Performance%20and%20Trends%20Oct%202011.pdf
Commercial Concerns Ltd. (2012). Company Home Page. Retrieved March 27, 2012, from http://www.commercialconcerns.com/
Concert Properties. (2011). Biggest New-home Developers in B.C. Retrieved Feb 22, 2012, from http://www.concertproperties.com/sites/default/files/New%20Home%20Developers%20BC.pdf
Consumer Choice Award. (1987). Recipient of the Consumer Choice Award. Retrieved Feb 22, 2012, from http://www.ccaward.com/index.php?option=com_company&view=company&layout=company&companyname=383&lang=en
D&B. (2012). Polygon Construction Management Ltd Business Summary. D&B.
Dynamic Gutters. (2012). About Us. Retrieved March 31, 2012, from http://www.dynamicgutters.com/
Greater Vancouver BC Builders & Developers Directory. (n.d.). Greater Vancouver Builders & Developers Directory. Retrieved Feb 22, 2012, from http://www.gvrd.com/real_estate_builders/index.html
Ho, B. (2012, March 30). Leaf Guard Operation Interview. (A. W. Liu, Interviewer)
32 | P a g e
Home Stars. (2012). Polygon Homes Review. Retrieved March 31, 2012, from http://homestars.com/companies/2779553-polygon-homes
Homes, P. (Director). (2011). Polygon Homes: Sustainability [Motion Picture].
HRG Projects. (2012). Projects. Retrieved March 23, 2012, from http://www.highriseglass.ca/projects.shtml
Industry Canada. (2011, Oct 26). Canadian Industry Statistics (CIS). Retrieved Feb 22, 2012, from http://www.ic.gc.ca/cis-sic/cis-sic.nsf/IDE/cis-sic236defe.html
Industry Canada. (2011, Oct 26). Gross Domestic Product (GDP) Construction (NAICS 23). Retrieved March 27, 2012, from http://www.ic.gc.ca/cis-sic/cis-sic.nsf/IDE/cis-sic23vlae.html
Industry Canada. (2010, Oct 26). SME Benchmarking Construction of Buildings (NAICS 236). Retrieved March 27, 2012, from Industry Canada: http://www.ic.gc.ca/cis-sic/cis-sic.nsf/IDE/cis-sic236bece.html
Inside View. (2012). Polygon Homes Ltd. Retrieved March 23, 2012, from http://www.insideview.com/directory/polygon-homes-ltd
Leaf Guard Englert. (2012). Leaf Guard Brand Gutters. Retrieved March 31, 2012, from http://www.leafguard.com/index.php
MacKenzie, R. (2012). The Building Products Supply Chain for US Home Building - Part 1. Retrieved March 23, 2012, from G Plus: https://www.gplus.com/building-materials/insight/the-building-products-supply-chain-for-us-home-building-part-1-30823
Manta. (2012, March 6). Polygon Construction Management Ltd. Retrieved March 26, 2012, from Manta Company Profile: http://www.manta.com/ic/mtqgsts/ca/polygon-construction-management-ltd
Manta. (n.d.). Polygon Homes Ltd. Retrieved March 23, 20112, from http://www.manta.com/ic/mw6zvk4/ca/polygon-homes-ltd
Mr. Leaf Guard. (2012). Retrieved March 31, 2012, from Mr. Leaf Guard Company Web Page: http://www.mrleafguard.com/index.htm
NAHB. (n.d.). Residential Building Materials Prices Higher Mainly Due to Rising Energy Costs. Retrieved March 27, 2012, from NAHB: http://eyeonhousing.wordpress.com/2011/02/16/residential-building-materials-prices-higher-mainly-due-to-rising-energy-costs/
P. H. (Director). (2010). Polygon Construction Management [Motion Picture].
Pathnet. (2006, July 8). The Process of Building a Home. Retrieved March 21, 2012, from Pathnet.Org: http://www.pathnet.org/sp.asp?id=16806
Polygon Homes. (2012). Company Page. Retrieved March 22, 2012, from http://www.polyhomes.com/about/company/community
Polygon Homes. (2012). Company page; Foundation. Retrieved March 22, 2012, from http://www.polyhomes.com/about/company
33 | P a g e
Polygon Homes. (n.d.). In The Community. Retrieved March 27, 2012, from Polygon: http://www.polyhomes.com/about/company/community
Polygon Homes Ltd. (2012). Management Team. Retrieved March 30, 2012, from Company Info: http://www.polyhomes.com/about/company/management
Polygon Homes. (2012). Polygon Homes. Retrieved March 30, 2012, from http://www.polyhomes.com/homes/list
Pro Image Gutters. (2012). Retrieved March 31, 2012, from Pro Image Gutters Home Page: http://www.proimagegutters.com/alurex_gutter_system.htm
Professional RFP Letters. (2011, May). Successful RFPs in Construction - Managing the Request for Proposal Process. Retrieved March 31, 2012, from http://rfptemplates.technologyevaluation.com/books/successful-rfps-in-construction.html
Rijn, J. V. (2012). Procurement Construction Industry. Retrieved March 30, 2012, from Indevelopment: http://www.indevelopment.nl/PDFfiles/ProcurementConstructionIndustry.pdf
The ReadyChat Team. (2011, September 15). Homebuilder Marketing – Extending Your Sales Center Online. Retrieved March 23, 2012, from http://www.readychat.ca/homebuilder-marketing-start-selling-online
Toro Aluminmum. (2012). Retrieved March 23, 2012, from http://www.toroaluminum.com/category/project-gallery/future-projects/
Weather Guard Gutters Inc. (2012). Retrieved March 31, 2012, from Weather Guard Gutters Inc. Home Page: http://www.weatherguardgutters.com/
Wikipedia. (2012, March 20). Construction Process. Retrieved March 27, 2012, from Design Team: http://en.wikipedia.org/wiki/Construction#Construction_processes
34 | P a g e
Appendix A – Description on the Main Learning Experience from This Project
Throughout the process of preparing this report, I’ve gained valuable industry insights about the real
estate and construction industry. These include aspects range from information sharing through
formal documentation as well as critical thinking in terms of understanding the needs of the account
and being able to tailor the company’s products and services in a way that they could help improves
the account’s overall business practices. However, the process of preparing this report has been
challenging in terms of data mining. The reason for that is because both companies are privately held
companies that most of the information required was not given and that information are not available
to the public. This has incurred significant constraints in limiting the accuracy of the report solely
through secondary research. Despite the impacts of challenges encountered, one of the many valuable
learning experiences that I’ve gained from this report was the ability to communicate clearly and
effectively with decision makers from the account. The reason for that is because a clear and concise
presentation of the proposed idea is extremely crucial in KAM as many top executives are often
faced with time limitation. Therefore, the ability to emphasize the proposed idea would definitely
reduce the chances of getting refusal on a proposed idea/project. Furthermore, this report has given
me the opportunity to gain real life hands on experience in approaching a client. This valuable
learning experience has eventually sparked up my intention in developing a business career in key
account management. Lastly, this report has given me a guiding force in how and where to position
myself in today’s business world.
35 | P a g e
Appendix B – Top Management Personnel & Board of Directors
Michael Aduain OC OBC Chair Man
Polygon Homes Ltd.
Neil Chrystal
President & Chief Executive Office
Polygon Homes Ltd.
Scott Baldin
Senior Vice President Development
Polygon Homes Ltd.
Robert Bruno
Senior Vice President Finance
Polygon Homes Ltd.
Rene Rose
Senior Vice President Development
Polygon Homes Ltd.
Robert MacArthur
Vice President Land
Polygon Homes Ltd.
Bob Bryant
Senior Vice President Construction
Polygon Construction Management Ltd.
Ralph Archibald
Senior Vice President Sales & Marketing
Michael Audain OC OBC
Chairman Neil Chrystal
President & CEO
Robert Bruno
Senior VP Finance
Sco[ Baldwin
Senior VP Development
Rene Rose
Senior VP Development
Robert MacArthur
VP Land
Peter Roskell
Senior VP Construc]on
36 | P a g e
Polygon Realty Limited
Celia Dawson
Senior Vice President Interior Design
Polygon Interior Design Limited
Peter Roskell
Senior Vice President Construction
Polygon Construction Management Ltd.
Ed Tsumura
Senior Vice President Customer Service
Polygon Construction Management Ltd.
37 | P a g e
Appendix C – Home Building Process
The following process is information derived from Pathnet.org:
1. “Foundation and Site Work a. Before the home is built, the site must be cleared and graded. Once this is done,
trenches for the foundation are dug. 2. Framing
a. Once the foundation is set, the floor, walls, stairs and roof are built. The frame is the shell of the home that provides the shape of the structure. The conventional approach is to build the home from individual pieces of lumber, called stick-built construction. Other alternatives to the conventional approach include concrete, steel, adobe, and straw bale.
3. Exterior Finishes a. This stage finishes the outside of the home and protects the inside from the elements.
When selecting the façade and roof covering, consider the maintenance costs and requirements, and how long the product will last.
4. Mechanical Rough-Ins a. Once the interior of the house is properly protected from the elements, the plumbing,
electricity, water heating, and heating, ventilation, and air conditioning (HVAC) systems are installed. The type of HVAC system being installed often determines the performance, warranties, and utility bills of using the install system.
5. Insulation and Air Sealing a. The step ensures the comfort ability of the house in even the most extreme
temperatures. b. Insulation is then added to the exterior walls and the roof-although some products
will air seal and insulate in one step. The quality of insulation material can make a big difference in energy bills.
6. Interior Finishes a. Once everything behind the walls is complete, the flooring, drywall, tiles and
cabinetry are installed, and the home is painted. This is the longest phase.” (Pathnet, 2006)
38 | P a g e
Appendix D – Sample Leaf Guard Price Quotation
39 | P a g e
40 | P a g e
41 | P a g e
Appendix E – Polygon Construction Management Ltd. Business Summary
42 | P a g e
43 | P a g e
44 | P a g e
45 | P a g e
Appendix F – Industry Supplier Criteria Sample
(Rijn, 2012)
46 | P a g e
47 | P a g e
Appendix G – Sample Site Plan
48 | P a g e
Appendix H – Competitor Analysis
Dynamic Gutters
Installer/retailer of Alu-Rex aluminum gutters Aluminum, Copper and Zinc Gutters Fascia Boards/Covers 17 colors of gutters to match the building Gutter Profiles:
o 5” Colonial o 5” Two step o 5” Crown mould o 5” Super 5 o 6” Colonial
40 year warranty on materials o Provided by Alcan – largest aluminum provider in the world
5 year warranty on labor and installation Offer services to Home owners, builder or developer, or property manager.
Weather Guard Gutters
Custom Euro Gutter system Available materials:
o Copper o Zinc o Aluminum
Available sizes of downpipe: o 2” x 3” aluminum downpipe o 3” x 4” aluminum downpipe (Generally for commercial buildings) o 3” round downpipe available in aluminum, copper and zinc.
Leaf Protection o Conventional gutters with a “leaf protection system” on top. This can be a vinyl or an
aluminum cover Standard manufacturer warranty (not provided by Weather Guard)
Pro Image Gutters
Residential & commercial gutters system o Commercial Gutters involve projects in…
Restaurants Apartment buildings Town/city halls Airports Commercial and industrial properties Shops and stores
Townhomes, condo & strata complex gutter Custom gutters Alurex gutter system
o Crown moulding
49 | P a g e
o Two step o Colonial
5 year warranty on labor and 40 year on material Member of the Canadian Homebuilders Association of BC Member of the Better Business Bereau A+ Rating 17 years of experience within the region of Lower Mainland of BC Dedicated fleet of 10 trucks Winner of consumer choice award 2007, 2008, 2009, and 2010
50 | P a g e
Appendix I – Competitors’ Product Details Vs Leaf Guard brand Gutters
Competitors’ Gutters:
51 | P a g e
Leaf Guard Brand Gutters:
52 | P a g e
